Insuring the property your business owns is essential to your long-term stability and profitability. This kind of policy can cover a variety of things depending on the type of property you have, the nature of the business you operate, and what the particular risks are in your area.
Understanding the risks that impact your property most will help you ensure your coverage is comprehensive, and it will also allow you to manage those risks better.
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- Cyber Security
One relatively new but increasingly important risk to recognize is the possibility of cyber attacks. If your network is compromised, it can cause significant interruptions in your business processes, and it may also require that you cover the costs of identity theft monitoring and other services for third parties whose information may have been accessed improperly.
The costs associated with this type of attack can add up quickly, and so it’s important that you make sure you have a comprehensive security system in place, as well as adequate coverage in the event a breach does occur.
- Supply Chain Disruption
Even if you’re totally covered and are managing your risks properly, your suppliers may not be. A problem somewhere along the line, whether due to a cyber attack, natural disaster, or some other issue, can have serious ramifications for your business. Assessing your risk in this area may be a bit more challenging than in more conventionally-recognized areas, but it’s also essential to the security of your business.
Including Contingent Business Interruption insurance in your portfolio is one good step to take to protect yourself from certain types of supply chain issues. Wherever possible, though, you should also seek out suppliers who are forthcoming about their own situations and who take proper steps to manage their risks as well.
- Floods
While most types of natural disasters are limited to certain geographic regions, floods can happen anywhere, and they can have a variety of causes. Although you can’t eliminate the chance of flooding in your area entirely, there are steps you can take to protect your property from certain types of flood damage.
Obtaining flood insurance through FEMA is important too, as damage from floods is not covered by other types of property insurance. To make sure you have the right coverage, you need to identify the most likely sources of flooding near your property, as the type of damage done by rushing floodwaters can be very different than the damage done when a water main bursts, for instance.
- Surrounding Structures
Just as you need to be aware of the risks to your suppliers and how they manage them, you also need to identify potential risks to your property posed by surrounding structures. Particularly if your building is attached or very close to the one next to it, a problem there could quickly spread your way.
The first thing to do in addressing this type of issue is to study your own policy to learn what will and will not be covered if you incur damage as the result of a situation that begins elsewhere. You’ll also need to find out how property owners near you are managing their own risks, and whether or not they’re covered for damage done to your structure in different situations.
- Liability Exposure
The particular attributes of your property, as well as what types of activities are carried out there, will all impact your liability risk, and this is something that needs to be factored into your property insurance as well. Specifics of the structure or of the facilities it houses may increase your potential exposure to liability, and that’s something you need to be sure is accounted for in your property insurance so that there are not gaps in your coverage where these two policies may interact.
If you’d like to learn more about how to manage your property insurance risks and the types of coverages we offer, contact our offices today.
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